Saudis Announce Oil Production Increases Again And Again And Again . . . .

[hatrack]

Saudi Arabia has announced, once again, that it was increasing production:

Saudi Arabia confirmed it would pump *9.7m barrels a day* next month, an increase of 200,000 and the highest level in nearly 30 years, as it repeated its standard offer of extra barrels if customers demanded them.

The kingdom also reiterated its promise to expand production capacity, noting that it expects to achieve 12.5m b/d next year and could add an additional 2.5m barrels – if needed – after that with a massive investment programme.

And of course, we can believe them! Just like when they announced this last year:

Saudi Arabia's oil production reaches 10.8 mln bpd

RIYADH, July 31 <2007> (Xinhua) -- Saudi Arabia's crude oil production capacity has reached *10.8 million barrels per day* (bpd), the country's state oil company Saudi Aramco announced Monday.

(...)

Saudi Arabia is the world's largest oil producer and exporter and plans to raise its production capacity to 12.5 million bpd in 2009.

And there's even more announcements just like this under the fold from the last three years. Where are you on this MSM?




EDIT

http://europe.theoildrum.com/node/4202#more

[Fovea]

1. The Kingdom of Saudi Arabia is not our friend.

Nor is it a trustworthy actor on the world stage.

They may be balls deep in Dubya, but the average Amerikan should not expect a reach around.

I take any number coming from them regarding oil production and reserves as a political and market manipulating ploy, and so far that has been the best use of their 'facts'.

It is like chocolate rations under big brother.

[GliderGuider]

2. Is anyone else getting this impression?

All the Saudis have left is words. They have repeatedly failed to increase production and have instead talked at every turn about production copacity. It's starting to look like they're over a barrel (or an oil drum). They seem to be desperately marking time until something happens in the world that they can point to and say, "See? It's not our fault after all!"

[phantom power]

3. Events have overtaken them. Their lever is gone.

I guess the other competing interpretation is that they've suddenly decided that it's worth risking world financial ruin and geopolitical chaos to sell oil at $125/barrel. I know I don't buy into that theory.